Rockhopper Exploration PLC (AIM: RKH) informed shareholders that they are nearing the receipt of €190 million from Italy, thanks to a preceding favourable decision from the International Centre for Settlement of Investment Disputes (ICSID).
On July 11, there was a ruling to lift a temporary suspension of enforcement, marking the latest development.
Following Italy’s attempt to nullify a past award in favour of Rockhopper in early March 2023, the ICSID set up a special committee. This previous award, conferred in August 2022 under the Energy Charter Treaty, incorporated compensation and interest at EURIBOR + 4%, accumulating annually since January 2016.
This recent progress lets Rockhopper put the ICSID award into action, contingent on setting up an escrow account within the next five working days.
However, the committee reserves the right to modify its decision anytime and has not declared its stance on legal costs.
The decision ensued after the involved parties couldn’t settle on escrow arrangements, resulting in Rockhopper presenting a proposal on May 24, 2023.
Rockhopper emphasized that lifting the enforcement suspension by the committee doesn’t insinuate any verdict on the validity of Italy’s annulment plea, set for a final hearing in early 2024.
Rockhopper’s CEO, Sam Moody, welcomed the committee’s decision in a statement. He expressed confidence that this outcome would allow enforcement to begin, with no financial risk to Italy pending the annulment’s resolution.
Currently, all legal expenses related to the annulment process are being handled by Rockhopper.
